Nasdaq surges on growth stocks; attention on Fed remarks.
Stock Market Update: Nasdaq Rises on Growth Stocks
by Shubham Batra and Shashwat Chauhan
October 2, 2023 at 9:23 AM PDT
The Nasdaq experienced a boost on Monday, driven by the rise of growth stocks. Investors eagerly awaited commentary from Federal Reserve officials and economic data to gain insights into the central bank’s interest-rate path.
Nvidia saw a significant jump of 2.8% after Goldman Sachs added the chipmaker’s stock to its conviction list. Tesla also made a recovery, rising 0.5% after initially falling 3% due to missing market estimates for third-quarter deliveries.
Other major stocks, including Apple, Meta Platforms, Amazon.com, Alphabet, and Microsoft, all saw gains ranging from 0.9% to 1.9%.
While eight of the eleven S&P subsectors experienced declines, the utilities index, often considered a bond proxy, saw a significant drop of 4.9%.
Fed Chair Jerome Powell refrained from commenting on current monetary policy or the economic outlook during a community roundtable discussion. However, Fed Governor Michelle Bowman expressed her willingness to support another increase in the central bank’s policy interest rate if inflation progress stalls or proceeds too slowly.
Cleveland Fed President Loretta Mester is also scheduled to speak later in the day.
Positive news emerged as U.S. manufacturing showed signs of recovery in September, with increased production and employment rebounding. However, global conditions still pose challenges for the industry.
Traders’ bets on the benchmark rate for November and December remained unchanged at nearly 69% and 55%, respectively, according to CME’s FedWatch tool. Additionally, they have priced in a 25-basis-point rate cut as early as March.
The yield on the 10-year Treasury note reached its highest level since 2007 at 4.689%, while the yield on the two-year note, which reflects interest rate expectations, remained above 5%.
Investors will closely monitor labor market data leading up to the crucial monthly jobs report at the end of the week for further insights into the Fed’s interest-rate path.
Congress passing a stopgap funding bill with overwhelming Democratic support also brought some relief to the markets. This came after Republican House Speaker Kevin McCarthy backed down from his party’s hardliners’ demand for a partisan bill.
As of 11:59 a.m. ET, the Dow Jones Industrial Average was down 186.11 points, or 0.56%, at 33,321.39, the S&P 500 was down 14.63 points, or 0.34%, at 4,273.42, and the Nasdaq Composite was up 47.20 points, or 0.36%, at 13,266.53.
Viatris saw a 3.1% increase after announcing agreements to divest some of its businesses for up to $3.6 billion.
On the NYSE, declining issues outnumbered advancers with a ratio of 4.02-to-1, while on the Nasdaq, the ratio was 2.27-to-1.
The S&P index recorded two new 52-week highs and 48 new lows, while the Nasdaq recorded 19 new highs and 211 new lows. (Reporting by Shubham Batra and Shashwat Chauhan in Bengaluru Editing by Vinay Dwivedi and Maju Samuel)
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Mained steady at 1.49%, as investors awaited further economic data and comments from Fed officials.
In international markets, Asian stocks saw mixed results, with Japan’s Nikkei 225 rising 0.2% and Hong Kong’s Hang Seng Index falling 0.5%. European stocks also experienced a mixed trading session, as investors awaited key economic data and updates on the European Central Bank’s monetary policy stance.
Overall, the stock market is showing resilience amid ongoing economic uncertainties and potential policy changes. Investors are closely monitoring developments in inflation, job growth, and central bank policies for further guidance on market trends.
About the authors:
Shubham Batra is a financial analyst with a background in economics. He has a keen interest in analyzing stock market trends and providing insights into investment opportunities.
Shashwat Chauhan is an experienced financial journalist, specializing in stock market reporting. He has a deep understanding of market dynamics and provides detailed analysis of various sectors and companies.
About the article:
This article provides an update on the stock market, specifically focusing on the Nasdaq’s rise driven by growth stocks. It also highlights major stock movements, comments from Federal Reserve officials, and positive news in the manufacturing sector. The article aims to provide readers with a comprehensive overview of the current stock market trends and factors influencing investor sentiment.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. The authors are not responsible for any decisions made based on the information provided. It is recommended to conduct thorough research and consult with a professional financial advisor before making any investment decisions.
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